Soybeans due to supply problems
Soybeans were higher in commercial and technical acquisitions, pulling contracts to a weekly gain. The USDA sees old crop stocks at several-year lows, with the potential for further reductions, and there is uncertainty about the area in the U.S. due to recent planting delays. Crush demand is strong and China has bought 132,000 tons of old beans from the United States. China’s National Grain and Oil Information Center says domestic stocks have exceeded 4.5 million tonnes due to lower-than-expected crushing rates. Demand for soy from the world’s largest buyer has declined somewhat recently due to tight crushing margins, the COVID blockade and economic uncertainty. The Buenos Aires grain exchange says that 65% of Argentina’s soybean crop is harvested, with 10% in good to excellent condition. Trade also monitors planting intentions in Brazil. Soybean flour has risen at the signs of oversold, while bean oil has been largely commercially active and both have benefited from higher bean movement.
Maize was lower in terms of profitability and technical sales, with the old harvest modestly lower per week and the new harvest solidly higher. Short-term forecasts show mostly good weather for planting, but parts of the region are wet, further delaying activity. The recent storm in the north-central central west probably did not affect the harvest so much, but it did affect the buildings and equipment. The USDA’s next round of crop progress and crop status is released Monday at 4 Eastern / 3 Central. Strong overall demand has limited losses, with a focus on both ethanol and export consumption. Thursday’s supply and demand update did not come as a significant surprise, except perhaps for the old global end-of-harvest stocks. The Buenos Aires Grain Exchange reports that 26% of Argentina’s corn crop is harvested, with 16% of the crop in good to excellent condition. The dry weather in central Brazil is at least stressful for their second critical corn crop. AgriMer in France says 92% of the nation’s corn crop is planted.
The wheat complex was mixed on Friday, while still ending the week in positive territory due to rising prices on Thursday. Parts of the Southern Plains have seen some relief recently, but much of the region remains stuck in drought, supporting Kansas City. Conditions in the northern plains are largely too humid to be planted, helping Minneapolis to close higher. Chicago was lower in terms of profitability and the overall good condition of the soft red winter crop. AgriMer of France says 82% of the country’s soft wheat crop is in good to excellent shape, down 7% on weekdays due to dry weather, but 3% more than during this period last year. India has also recently experienced drier-than-normal weather, pulling in lower production forecasts. Combining those meteorological problems in the US and the world with the uncertainties surrounding Ukrainian production following the Russian invasion, the fundamental global outlook has shifted from neutral to optimistic. Argentina, a net exporter of wheat, has become the first country to authorize the planting of a GMO wheat variety, the product will not be marketed immediately due to the concerns of buyers. The Rosario Grain Exchange estimates that Argentina’s 2022/23 wheat harvest is 19 million tons.
https://brownfieldagnews.com/market-news/soybeans-up-on-supply-concerns/ Soybeans due to supply problems